Author: Team Flexsin

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Honesty is the best policy in life, especially if you are filing for bankruptcy, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. When you file your bankruptcy papers, it is important that you mention all your assets, income and debts and not hide things. This is because sooner or later a disclosure might hamper your chances of getting debts discharged through bankruptcy. In fact, you might even end up getting your bankruptcy discharged or worse, get jail time. since you are required to sign bankruptcy documents, if anything mentioned on them is not true, you might be held guilty of perjury. Additionally, if the bankruptcy documents are incomplete or something in them raises the trustee’s suspicion, a thorough analysis of the bankruptcy schedule is done then.

One of the most common reasons for not disclosing everything is because people want to hide their assets. debtors think that hiding assets might help to protect them. Unfortunately, it is not true. When you file for bankruptcy, you need to disclose all assets while filling your bankruptcy schedule, even if it seems insignificant.

Just like listing your assets is important, so is listing all your creditors, including those friends or relatives from whom you have borrowed money. sometimes, people don’t want some of their creditors to be aware of their bankruptcy filings and thus omit their names from the list of creditors. this is another potential mistake that people need to avoid while filing for bankruptcy. you should list all your creditors as the bankruptcy trustee wants all creditors to get their part of your estate. Thus, if you do not want more scrutiny of your bankruptcy schedule, you should list all your debts, creditors as well as assets and income.

Considering the importance of transparency and honesty in the bankruptcy system, it is vital that you disclose everything when you file for bankruptcy. however, an honest mistake is something that is understood even by the bankruptcy trustee. Thus, if you end up omitting something in your schedule you can always correct it by filing an amendment as soon as you become aware of the mistake. For further assistance during bankruptcy proceedings, you can consult with experienced bankruptcy lawyers by calling 888-297-6023.

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Saab, the aircraft manufacturer turned automobile giant has been an innovator. The first of its kinds to come up with heated seating in automobiles, the company had to file for bankruptcy in Sweden, its home country. Since its entry into the automobile sector post-World War II, its sales peaked in 1988 and again in 2006. However, during the period of 2006-2009, a decline of almost 20.3% was observed in Saab sales.

As per the Swedish Company Reorganisation Act, any bankruptcy application is approved only if a reasonable cause is present which assumes that reorganization will serve the purpose of keeping the company afloat. Reorganization is generally used when a company faces losses but expects to continue in function say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group.

Corporate bankruptcies are tough, especially on the company’s employees. In the case of Saab filing for reorganization bankruptcy, their employees were left hanging without being paid for the previous month. Often corporate bankruptcies can lead to a spate of personal bankruptcies (of employees). In case you are suffering from financial problems as a result of the loss of a job or corporate bankruptcy, you can consult with experienced bankruptcy lawyers at 888-297-6023regarding your predicament.

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When you file for bankruptcy, your unsecured debts might be discharged eventually but your secured debts like a mortgage or automobile loan, etc. cannot be discharged. According to lawyers of Dallas based bankruptcy law firm Recovery Law Group, you can either reaffirm the debt, consolidate it or settle it. If you are thinking of reaffirming the debt, you need to work out an agreement with your creditor regarding new terms. The agreement would then be signed by both, the creditor and the debtor. However, before you go ahead with debt reaffirmation, it is important that you know about the pros and cons of the procedure.

Advantages of debt reaffirmation

• If you wish to keep your property, which is not exempted then you need to reaffirm the debt.
• Reaffirmation of your debt makes you aware of not only your payment amount but also your interest rate, etc.
• Reaffirming a debt helps improve credit rating since it shows sincerity on your part when you make regular payments on your debt.

If the item in question for the debt is anything other than car (electronics, furniture, etc.) you can opt for negotiation. The creditor might agree for payment of a lesser amount since if the debt is not reaffirmed, the property in concern will be auctioned which will end up being costlier to the creditor. The creditor might be open to renegotiation of terms than go through the process of auction.

Disadvantages of debt reaffirmation

• With the signing of the reaffirmation agreement, you again become responsible for the debt.
• The reaffirmed debt if not paid in the future would not be discharged through bankruptcy unless you file again (after a specific time period depending on the previously filed bankruptcy chapter).
• Defaulting on reaffirmed debt might result in wage garnishment by the creditor.

In case you are contemplating bankruptcy and there is any debt that you wish to reaffirm, you should consult with experienced bankruptcy lawyers at 888-297-6023 before doing anything.